How Can I Get On The Property Ladder? Buying Your First Home With Jade Vanriel
Date: Jul 29, 2020
Are you looking to buy your first property, but you don’t know where to start? Maybe you already have some savings and you want to learn more about the mortgage process? And what about the costs that follow after you’ve purchased your first home, how do you decorate on a shoestring budget?
Buying your first home can be tough. What was once seen as a rite of passage amongst older generations has become a distance goal for many younger people as property prices rise at a disproportionate rate relative to income growth. According to the Office for National Statistics (ONS), the average price of buying a home in the UK in 2020 was £234,612. Given that mortgage lenders typically demand at least 15% of that price as a deposit (requiring first-time buyers to save on average a colossal £35,192 upfront), it can make owning a home feel like an impossibility.
But fear not – this is not the case! Jade Vanriel is a property influencer who became a homeowner at the age of 23 without financial help from her parents. She first started working aged 16 and saved until she had enough for a deposit, making sacrifices along the way to reach her goal of buying her first property.
Jade believes “everyone can buy a property” - so if you’re dreaming of owning your own place Jade’s super inspiring journey will empower you to get on the property ladder. Here are just some of the ways she proposes to help you get your first foot on the property ladder…
BUILDING THE RIGHT MINDSET TO ACHIEVE YOUR GOAL
What is ‘money mindset’?
Money mindset is all about the unique set of beliefs and attitudes you posses towards money. It is central in how you make saving, spending and investing decisions. People with healthy money mindsets will believe that:
It is possible to achieve their short, medium and long-term goals
Although they have the freedom to spend, they are not compelled to
Your money mindset is formed by a number of different factors. The personal experiences around the topic of money during your childhood years will heavily influence your attitudes towards money later on in life. Indeed, a 2013 study by the University of Cambridge found that our approach to money, such as planning ahead and delaying gratification, is set by the age of seven.
Jade explains that her money mindset, which helped her find the discipline to save for a house, was shaped by her parents’ attitudes to money growing up. Her father, for example, was very money conscious and would avoid spending at all costs, while her mother was more relaxed about spending, struggling to pay for their council flat. It was this contrast that made Jade aware from leaving university that she had to be persistent and save if she wanted to make it onto the property ladder. Yet Jade is still in the process of trying to improve upon her money mindset by finding ways to alleviate her predisposition to feeling guilty when spending.
Her advice to those hoping to buy their first home is that they ought to be willing to sacrifice. If you are entirely dedicated to purchasing your first property, this can mean not spending any money outside of food, rent and commuting to and from work – this approach enabled Jade to buy her first flat at the age of 23. How much you are willing to personally sacrifice, however, is dependent upon how long you want to wait to buy your first home. For many, making as much of a financial sacrifice as Jade would lead to a fall in personal wellbeing – this should be avoided. The second aspect of sacrifice when it comes to buying your first home, Jade argues, is to not become fixated on your ‘dream’ property. It is far better to settle for a next preferred location and to renovate the property as you can afford it. This will allow you to get onto the property ladder and to (hopefully) benefit from rising property prices. That said, it is important to consider whether the location and size of the property will suit you in five years down the line and not just in the immediate term because the costs associated with moving will not make it worth the purchase failing this.
“Anyone can buy a property: it takes the right discipline and mindset!”
The good news
Once you have nurtured the right mindset with which to achieve your goal, there are, thankfully, a number of things you can do which can make your journey to purchasing your first property easier, for example, taking advantage of government first time buyer schemes. This importance of having a mortgage broker on your side during the home-buying process should also not go ignored as they can find you the best mortgage deals that are unavailable through other channels.
In this episode, Jade shares the simple habits she adopted to help her save money and get on the property ladder as soon as possible. She explores how to best position yourself to get your first mortgage, the home buying process and some mistakes you can easily avoid - like getting too emotionally attached to a property before it’s yours.
You can listen and subscribe here:
Resources:
You can see more of Jade’s story at:
Instagram: @jadevanrielx & @vanrielhome
YouTube: Jade Vanriel
Jade has some recommended resources for learning more about the property market and mortgages that she shares in this episode, you can find them on the links below:
Instagram: Propertycohort